According to a media report, the European Commission has launched an investigation on whether to impose tariffs against cheaper Chinese electric vehicles being imported into the EU.<\/p>\n
The Commission will have 13 months to assess whether the extra tariffs above the standard 10% will help protect European Union producers against cheaper Chinese EVs, which are said to be benefitting from state subsidies. The anti-subsidy investigation is said to cover imports of electric cars from non-Chinese brands, including Tesla, Renault & BMW.<\/p>\n
However, the Chinese Chamber of Commerce to the EU urged the Commission to look at Chinese EVs objectively. They also opposed the investigation, stating that their competitive advantage isn’t due to subsidies.<\/p>\n
Amidst the growing tensions between China and the EU due to the former’s close ties with Russia, Europe is looking to reduce its reliance on China for its green transition. European carmakers are looking to produce lower-cost EVs and erase China’s lead in developing cheaper models.<\/p>\n
The Commission mentioned that China’s share of EVs in Europe has already risen to 8% and could reach 15% by 2025. The reason for the growth is attributed to the prices, which are, on average, 20% below EU-made models.<\/p>\n
Germany’s VDA auto association, though, has raised concerns about a possible backlash from China. They insisted that the EU must focus on creating conditions for European EV makers to succeed by way of lowering electricity prices and reducing bureaucratic hurdles. This reportedly comes due to the fact that Germany’s car industry relies on China for a large proportion of its sales revenue.<\/p>\n
The investigation by the European Commission is said to be looking at a range of possible unfair subsidies and preferential lending or cheap provision of land.<\/p>\n
China is currently the world’s biggest EV producer. The country also surpassed Japan to become the world’s largest auto exporter in the first quarter of this year.<\/p>\n